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Green hydrogen dream making good progress

2024-03-04  Maihapa Ndjavera

Green hydrogen dream making good progress

Namibia’s first large-scale vertically-integrated green hydrogen project is progressing well, said Green Hydrogen commissioner James Mnyupe.

He observed that as March unfolds, the company Hyphen Hydrogen Namibia accelerates towards finalising pre-feasibility assessments and initiating the formal feasibility study phase. 

Hyphen is the preferred bidder for Namibia’s first-ever large-scale vertically-integrated green hydrogen project.

“Engagements with the International Finance Corporation and local stakeholder meetings underscore Hyphen’s commitment to thorough socio-environmental responsibility,” said Mnyupe, who doubles as the presidential economic advisor. 

Namibia took the first step to position itself at the forefront of worldwide aspirations for green hydrogen production in 2021 by setting in motion plans to develop the country’s first vertically-integrated green hydrogen project in the Southern Corridor Development Initiative. 

As earlier communicated, this initiative is in the //Kharas region, with a massive investment of US$10 billion by Hyphen Hydrogen Energy. Once fully-developed, it will employ an estimated 3 000 people, while some 15 000 construction jobs are expected to be supported over the four-year construction period. 

Over 90% of these positions are anticipated to be filled by Namibians.

In a statement last week, Mnyupe added that the Namibia Green Hydrogen Programme (NGHP) has meticulously crafted the green industrialisation blueprint. This groundbreaking document, he noted, is slated for presentation to Cabinet in March 2024.

It outlines key infrastructure development and novel industrial clusters. 

“If endorsed, the blueprint will be released to the public, showcasing Namibia’s potential as a hub for clean manufacturing, diversified exports and increased employment opportunities. NGHP, in collaboration with the Namibian government, is set to launch a market- sounding exercise by the end of quarter 2 of 2024.

 This strategic initiative aims to gauge investor interest in developing assets crucial for cost-effective production in the envisioned green hydrogen valleys,” he continued. 

The initiative, Mnyupe noted, aligns with the announcement of Special Economic Zones (SEZ) in the 2024 budget speech by finance minister Iipumbu Shiimi last week.  

“We are working to introduce a SEZ regime as an anchor to our ambition to curate competitive industrial zones. Participants in the SEZ will be subject to a corporate income tax rate of 20%. The normal deductions in terms of capital allowances will apply in the SEZ regime, while value added tax (VAT) will be zero- rated. In this respect, the SEZ Bill is expected to be tabled in the National Assembly during FY2024/25, in advance to the expiration of the export processing zone (EPZ) regime in 2025,” said the minister.


2024-03-04  Maihapa Ndjavera

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